LV= was attacked by IFAs at the COVER Forum after the firm said it was relying on the Ombudsman to g...
LV= was attacked by IFAs at the COVER Forum after the firm said it was relying on the Ombudsman to get some of its claims right.
Les Dilley, life claims manager at LV=, said that while he hoped he made the right choice most of the time when judging claims, he does not always get it right, adding that, of the claims that get to the Ombudsman, 70% are in favour of the customer.
But several advisers criticised the insurer's way of dealing with claims, saying it is best for the industry if the majority of claims are solved with the insurer.
James Brooke, financial architect at Anand Associates, said: "I prefer to stop it before it gets to the Ombudsman and the press."
Agreeing with Brooke, Kevin Carr, head of protection strategy at LifeSearch, said: "It's completely unacceptable for any provider to take the stance that it is ok to decline claims just because we have an Ombudsman service to pick up the pieces.
"It should be the last resort and nothing else. If a claim is declined the customer has already completely lost their trust in the industry."
Dilley said the action taken should be in proportion to the claim and that innocent non-disclosure could be an example of the industry "shooting itself in the foot".
